The UKs Betting and Gaming Council (BGC) has declared their backing for a mandatory levy to bolster funding for research, education, and treatment (RET) services aimed at tackling gambling issues. However, they advocate for this tax to operate independently, with varying rates for different companies to safeguard land-based enterprises.
The government is anticipated to unveil a report on gambling in the UK shortly. This report is likely to propose a uniform 1% tax on all gambling businesses, implying that land-based businesses would bear the same rate as online counterparts.
The BGC asserts that their research indicates a flat 1% tax on land-based businesses would erode 10% to 15% of their post-tax profits. This is attributed to the fact that land-based businesses shoulder more fixed expenses, such as rent and personnel, which online businesses do not.
The BGC also highlights that numerous land-based businesses in the UK are still grappling with the aftermath of the pandemic. Amidst rising costs and high inflation, any additional outlays could prove detrimental to their operations.
The BGC had previously stated that the gambling sector should contribute to RET services. However, they are now urging the government to implement a system where the tax rate is lower for land-based businesses due to their higher fixed costs.
Ive consistently stated that I’m calm about so-called obligatory charges because the funds are already collected from BGC members, they’re already dispersed independently of the industry, and the BGC proposed to the government last year that the contribution should be compulsory,” said Michael Dugher (pictured), BGC Chief Executive.
“However, we desire to see consistent, long-term funding for RET, provided it acknowledges that land-based operators confront greater cost pressures, so there must be suitable mitigating actions, and funding continues to be allocated efficiently and genuinely independently.
“It is absolutely essential that treatment is provided to those who unfortunately suffer from the most severe cases of ‘problematic gambling’, who often have multiple complex health issues and need to be treated in clinics, they represent a small group within the Gambling Commission’s broader definition of the problem gambler population.
“But most importantly, any new system must be graded to safeguard land-based operators such as bingo halls, casinos, and betting shops, as they have disproportionately higher fixed costs due to buildings and tens of thousands of employees. They are still struggling in the aftermath of the pandemic, like all other retail, hospitality, and entertainment businesses, facing all the challenging economic headwinds.”
Officials assert that they think reduced oversight and lower levies are beneficial for enterprises, thus they must prevent this new tax from causing job cuts or more companies shutting their doors.
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